NV Energy reveals details on four cancelled Solar + Storage projects from Primergy, Avantus & EDF Renewables

Two more volumes of NV Energy and Sierra Pacific Power’s Fifth Amendment in its joint 2021 Integrated Resource Plan (IRP) were released, shedding light on the need for more capacity after approved projects halted.

In particular, the volumes discussed why Primergy’s Iron Point and Hot Pot paired projects were removed from the IRP after having been listed in past amendments.

In Volume 1, the utility stated that the proposed solution to the North Valmy Generating Station and proposed self-builds like 400 MW Sierra Solar address capacity and RPS concerns created by “incremental cancellations” and delays of previously approved projects. These cancellations and delays aggravated concerns over “uncertain availability of regional market capacity and energy.”

“Renewable project developers citing various photovoltaic and battery energy storage market conditions continue to struggle to meet their contractual obligations,” the filing read, pointing to the 128 MW/58MW Boulder Solar III photovoltaic (PV) and batter energy storage system (BESS) developed by 174 Power Global, which is the only listed delayed project.

But Primergy’s Hot Pot and Iron Point projects were two of the cancelled projects, with news of the halted development being reported to NV Energy in January when notices of termination of the Build-Transfer Agreement (BTA) having been issued. In March, NV Energy acknowledged Primergy’s intention to terminate the BTAs and offered a formal termination agreement.

In April, Primergy allegedly responded with assertion that the original notice served as valid termination and a formal one was unnecessary. By June, NV Energy responded with notices of termination anyway for both projects.

Potential damages recovery discussions are ongoing, the filing read.

NV Energy added that both projects were bid by Primergy into the 2023 Open Resource RFP as a combined BTA. The Iron Point project was originally sized at 250 MW/200MWh and had a COD of December 2023, while Hot Pot was 350MW/280MWh with a COD of December 2024.

In volume 2, testimony from NV Energy’s vice president for resource optimization, Ryan Atkins, explained that the need for a Fifth Amendment was in part due to the dissolution of Primergy’s BTA for the projects.

Atkins listed four reasons for the new amendment, first stating a need for a solution at the Valmy Generating Station by the end of 2025.

“Valmy provides both capacity and critical system support to the Carlin Trend load pocket and the units cannot be retired without a replacement that can provide firm and dispatchable output,” he said.

The second driver was the cancellation of projects like Hot Pot and Iron Point which caused NV Energy to remove them from its resource portfolio standard (RPS). Also cancelled were Avantus’ 475 MW Southern Bighorn Solar and EDF Renewables North America 200 MW Chuckwalla PV and BESS projects.

Combined, these projects were to provide 1100 MW in solar generation and 795 MW from BESS. All four were cancelled since the IRP’s Third Amendment in 2018.

“The loss of these projects presents two significant challenges,” Atkins said, citing the first as loss of renewable generation during daylight hours to contribute to RPS requirements, and the second being the loss of capacity to support resource adequacy (RA) in the evening hours.

Atkins added that NV Energy “holds one of the larger open positions in the Western region” and that the strategy to reduce the open position is another driver behind the Fifth Amendment. NV Energy is preparing to participate in the financially binding phase of the WRAP in summer 2027 and will need to pass a forward-showing requirement to avoid fines.

“Without the addition of new resources before that time, (NV Energy) is currently projected to be more than 1600 MW deficient for July 2027,” Atkins stated.

The last driver behind the new Fifth Amendment is the need to advance Nevada’s objective to become a leading producer and consumer of renewable energy while supporting growth. NV Energy plans on continuing to target its proportionate share of Nevada’s 2050 clean energy goal through the plans listed in the new amendment.

Atkins leaned on the presented Preferred Plan in the amendment, which seeks approval in converting the coal-fired combustion at the North Valmy Generation Station to natural gas-fired combustion. This would allow it to retain 261 MW of capacity that it already provides, which is needed to support the Carlin Trend load pocket.

The conversion would cost about USD 83m with in-service dates of December 2025 for Valmy 1 and May 2026 for Valmy 2.

The Preferred Plan would also include the purchase, installation, and operation of self-build 400 MW Sierra Solar PV project in Churchill County, Nevada. Without transmission, this project is estimated to cost about USD 734m with an expected levelized energy price of USD 38.24/MWh and an in-service date of April 2027.

“This solar facility would provide critical renewable generation to help offset the loss of Hot Pot, Iron Point, Chuckwalla, and Southern Bighorn Solar,” Atkins said.

Additionally, the Preferred Plan seeks to have continued operation of Tracy Units 4 and 5 through 2049 and approval of USD 54m in capital expenditures needed for the continued operation of those units.

The plan also requested to amend its Renewables Plan to expend funds allowing for future development of the Crescent Valley renewable project and to amend the transmission plan to expend about USD 173m to construct needed transmission infrastructure associated with the Esmeralda, Amargosa, and Apex projects.

*This story was originally published exclusively for NPM subscribers last month.


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